The Poloniex cryptocurrency exchange has restarted withdrawal services following a security breach that resulted in a $100 million loss.
Cryptocurrency exchange Poloniex has announced that it is nearing completion of restoration efforts following a significant hack on November 10 and is gearing up to resume its operations.
Poloniex, the cryptocurrency exchange owned by Justin Sun, is in the final stages of restoring its operations following a major hack on November 10, where attackers managed to steal at least $100 million in cryptocurrency. In an official announcement on November 15, Poloniex stated that it has largely completed restoration efforts and is now operating smoothly. The exchange has engaged a top-tier security auditing firm to enhance the security of funds and is preparing to resume deposit and withdrawal services soon. The ongoing evaluation process is expected to take several more days as the platform undergoes comprehensive security audits and verifications to ensure a secure and reliable environment for users.
The security breach prompted Poloniex to disable its wallet and initiate investigations. The incident, likely resulting from a "private key compromise," as suggested by blockchain security firm CertiK, raised concerns about the safety of user funds. Despite facing the security challenge, Justin Sun, the owner of Poloniex, took to social media, promising full reimbursement to users affected by the hack. Sun emphasized that Poloniex maintains a healthy financial position and is actively seeking collaborations with other exchanges to recover the lost funds.
This move to resume operations comes after Poloniex reached a settlement in early 2023 with the United States Treasury Department’s Office of Foreign Asset Control. The settlement, amounting to $7.6 million, addressed over 65,000 apparent violations of multiple sanctions programs. The exchange is determined to uphold its commitment to user security, with the ongoing evaluation process aimed at ensuring a robust and secure platform for its users.